Payment Protection Insurance

Recently I wrote about the importance of preparing for layoff, and the steps to take. For me I mainly think about what my Savings vs Expenses is in times of uncertainty, but have you considered Payment Protection Insurance (PPI)? Most people, like like myself included, had never heard of PPI until recently.

Basically, PPI is an insurance policy against repaying a debt, which banks typically offer you in-case you become ill, disabled, lose a job, or have circumstances that prevent you from repaying a debt. 

Here’s a short video that helps explain a little more what PPI is:

Millions of people every year have agreed to PPI with loans they take out from car loans to purchasing kitchen sinks on credit, and not even know it. For a lot of loans, PPI is required by bank or credit agencies in order to protect themselves. However, claims are hardly ever made against these insurance policies and when they are they’re often hard to make justifiable claims based on all the banking rules/regulations.

Much like the warranties that you buy at checkout at Best Buy, these insurance policies never get used. Have you ever had a claim that you wanted to file against but never had a Claims Calculator* to quantify the PPI Return* you could see from one? It might just be worth your time and money to consider hiring a claim agency to work for you in claiming owed PPI.

Did you know on average the payout of a PPI claim is about £2,750, but people often get frustrated about the lengthy process of going through a claim. Most banks are now expected to settle mis-sold PPI complaints within eight weeks, which isn’t a bad payday for a little patience.

How to tell if you have PPI?

  • Check your loan documents at signing
  • Review loans statements for new charges & deductions
  • Call your loan creditor or bank today
Have you ever heard of PPI before? Have you ever filed a claim on mis-sold PPI? I’d be interested to hear from some of our readers.

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One comment

  1. I had PPI on my first car loan, though I didn’t realize it at the time. I paid my loan off way early and got a check back for some kind of PPI refund, and I called to ask what it was. Generally, I look at PPI like I do most extended warranties: as a waste of money that are almost never worth it.

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